Before you send money to a Chinese supplier, there are a set of practical checks that significantly reduce your risk. This article covers the main areas NZ and AU buyers should review before committing to a payment.
Supplier identity
Verify the supplier’s Chinese company name against official records. Confirm the company is registered, that its business scope covers your product type, and that the registration status is active.
Do not rely on the English trading name alone — many companies trade under English names that differ from their registered Chinese name.
Payment name
Before transferring funds, confirm that the payment account name exactly matches the verified Chinese company name. Payment fraud often occurs at this step — a fraudulent actor changes payment details late in the negotiation, redirecting money to an unrelated account.
If the payment name is an individual’s name rather than a company name, or if it does not match the supplier you verified, stop and ask for a written explanation before proceeding.
Product specification
Confirm that the product you are paying for is precisely specified in writing — dimensions, materials, finish, compliance requirements, quantity, and packing. Vague specifications lead to substitution disputes where the supplier claims they delivered what was ordered.
Sample approval
For new products or new suppliers, approve a physical sample before committing to production quantities. Document the sample approval in writing. Use the approved sample as the production reference during any quality checks.
Payment terms and milestones
Agree on payment terms that match production milestones. A 30% deposit is standard for many suppliers; the remaining 70% should be payable on shipment or inspection, not upfront. Avoid full upfront payment to a new supplier, especially for first orders.
Import requirements for NZ and AU
Check whether your product requires any compliance documentation for import into NZ or AU. Common requirements include:
- Country of origin labelling
- Product safety and electrical compliance (for appliances and electronics)
- Biosecurity declarations (for wood, leather, or agricultural products)
- MPI requirements for goods from China into NZ
- ACCC requirements for goods into AU
Problems with import requirements discovered after goods arrive in NZ or AU are expensive — quarantine, treatment, re-labelling, or destruction of goods are all possible outcomes.
Freight and customs documentation
Before goods ship, confirm that the commercial invoice, packing list, and bill of lading are accurate and consistent. The commercial invoice value must reflect the actual transaction value — undervaluation to reduce duties is illegal in both NZ and AU.
Spare parts and after-sales
For mechanical or technical products, confirm spare parts availability and supplier support before the order ships. It is easier to negotiate spare parts and replacement components while the product is still at the factory than after it has arrived.
Summary checklist
- Supplier identity verified against Chinese public records
- Payment name matches verified company name
- Product specification confirmed in writing
- Sample approved before production (for new products)
- Payment terms agreed with milestone-based structure
- NZ/AU import requirements checked
- Freight documentation reviewed for accuracy
- Spare parts plan confirmed
Completing this checklist before payment does not guarantee a perfect outcome, but it removes the most common causes of expensive problems.
ANZSBS helps NZ and AU buyers with supplier checks, product detail review, spare parts planning, and freight preparation. Contact us before you pay.